The challenges facing the bike industry have once again been demonstrated by the financial results of some of the market’s biggest players, Shimano having downgraded its outlook for 2025 and Giant and Canyon reporting profits down 66 per cent and 30 per cent respectively.
While there was hope things might start to improve across the industry in 2025 (the motto having been ‘Survive until 2025‘ for many smaller brands), the latest update from Shimano, Giant and Canyon suggests the market remains tough for bike brands this year.
Last week, the world’s biggest manufacturer of bicycle components Shimano revised its 2025 forecasts having seen how the business performed in the first half of the year. While sales were actually up 12 per cent on the same period last year, Bicycle Retailer and Industry News reported that the components giant blamed increased operating and non-operating costs for the downgraded forecast.
It highlighted foreign exchange costs due to the US dollar’s weakness relative to Asian currencies, as well as a “continuation of inventory adjustments in the Chinese market, leading to expected drop in profit margin due to an increase in expenses in a phase of production adjustments at factories.”
In short, Shimano has lowered its net sales forecast by two per cent, although this new figure is still above 2024 levels, while its operating income forecast has also been lowered by a third. The news also comes after Shimano recently granted a preliminary approval of the settlement regarding a class action lawsuit filed by crank-owners in the US over the inspection programme and recall.
Meanwhile, Giant followed up the recent news that its revenue had slumped 25 per cent, and was down 12 per cent across the entire first half of 2025, by explaining this meant its net pre-tax profit is down 66.7 per cent on the same period last year. The latest figures follow last month’s announcement that in April, May and June, revenue was down 17 per cent, 29 per cent and 30 per cent respectively on those same months last year.
The brand said US business had softened due to tariff uncertainty, but said its inventory levels were back at “healthy pre-pandemic standards”.
Despite the challenges facing the bike industry, notably issues with inventory stemming from overstocking during the Covid bike boom, Giant posted a post-tax profit of NT$1.26 billion (£31.9m) in 2024.
CEO Phoebe Liu said: “While demand in Europe and the US remains soft, we are seeing signs of stabilisation. For example, the UK market has performed strongly. In China, cycling remains popular — though sales have naturally moderated following explosive growth in recent years, the volume remains steady. With a long-term view, we believe bicycles are key to sustainable mobility, and we’ll continue driving growth through innovation, quality, and service.”
Fellow bike industry news site BikeEurope has also in the last few days reported that Canyon’s net profit is down by a third on the first half of last year, as its revenue was down five per cent too. Canyon also pointed to tariff uncertainty for having hampered US performance, but said the European road and gravel markets remain strong.
In June it was revealed that Canyon had made a £32m loss in 2024, the direct-to-consumer brand’s investment company Groupe Bruxelles Lambert (GBL) stating that the value of its shares were now worth 43 per cent less than in 2023 and 35 per cent less than what they invested five years ago.
